PAYE13055 - coding: coding: general principles: ESTINC

ESTINC is the Net Statutory Income (NSI) and is used in the calculation of age related allowances.

When calculating ESTINC take into account any changes you know of from a return or otherwise. Note any increase in a public service or state pension.

ESTINC appears on form P2 and can sometimes be a cause of unnecessary correspondence. There are some cases when it is not necessary to enter ESTINC.

As a general rule it is not necessary to enter ESTINC if

• The taxpayer is entitled to the maximum amount of the allowance

Or

• The estimated NSI is such that the taxpayer is obviously due the minimum amount of the allowance and is unlikely to be due full or reduced age related allowances in the foreseeable future

If you enter the ESTINC and the full amount of the age related allowance(s), processing will calculate the reduced allowance for you.

MCCP will not be automatically reduced when ESTINC is entered on the coding record, you will need to manually calculate any income reduced age related allowances and will need to remember that MCCP may require recalculation if the ESTINC is amended. In the first year of marriage any reduction in the amount of PAA or PAE because of their level of income also needs to be calculated manually.